Last week, for the third time in the last four months, the People's Bank of China raised key policy rates. It increased one-year deposit and lending rates by 25 basis points each, taking the rates to 3% and 6.06%, respectively. These are part of the central bank's efforts to combat spiraling inflation. Analysts believe that the present rate hike was not unexpected, and expect further rate hikes over the next six months.

Even though the present rate hike did not spook the market, it does not take away the fact that Chinese stocks underperformed its developed market peers. The Shanghai Stock Exchange lost 7% in the last one year, while Dow Jones Industrial Average and FTSE 100 surged 15-16% in the same period.

We have identified 10 Chinese stocks that investors can consider for long-term. The selected stocks have potential to deliver 20% to 73% returns over the next one year with an average analyst buy ratings of 69%.